Chip shortage forces Bosch plant to lay off workers
Bosch Car Multimedia Portugal, in Braga, stressed that "the company has been strongly affected by the worldwide shortage of supply of electronic components," which has worsened in the second quarter.
The Bosch plant in Braga will go into lay-off from Monday due to a chip shortage and will pay its staff 85% of monthly gross income, the group said on Friday.
This measure covers employees in the production and support areas, in the period from May 10 to June 9 this year, “with a possible extension,” said Bosch Car Multimedia Portugal, in a statement.
“Seeking to mitigate the impact of this measure in the lives of workers and their families, Bosch will ensure the retribution of 85% of gross monthly income to affected workers, going beyond the two-thirds provided by law,” the company said.
Bosch Car Multimedia Portugal, in Braga, stressed that “the company has been strongly affected by the worldwide shortage of supply of electronic components, namely chips, which has worsened in the second quarter of 2021”.
This global crisis, he stressed, “has caused several production stoppages in the company”.
The worsening of the situation, Bosch said, “will result in prolonged production stoppages at Bosch in Braga, and the company decided to resort to lay-offs under the Labour Code, seeking to preserve jobs with this measure.
Despite the negative impact of the shortage that the components are having on business, the management of Bosch Car Multimedia Portugal says it already has new products and technologies planned to be launched and reinforces the expectations of growth and sustainability for the coming years.
The group said that employees were informed in good time.
